Right here is the authorized safety that residents with excellent bank card dues have
Q- When does non-payment of dues turn out to be a felony/civil case, what’s the penalty for it and might I be stopped from flying out of the UAE if I’ve dues to be paid?
Pursuant to your queries, it’s assumed that you’re a resident of Dubai and also you availed bank card amenities from a financial institution which is predicated within the emirate of Dubai (the ‘Financial institution’). It’s also assumed that the financial institution had collected safety cheque (s) from you towards the restrict of the bank card amenities.
It needs to be famous that within the UAE, when a private mortgage or a bank card facility is granted to a borrower, the banks or monetary establishments could get hold of from the borrower, a signed private mortgage settlement or a signed utility type that accommodates phrases and situations for it. They could additionally gather the cheque (s) as a safety towards the mortgage quantity or bank card restrict quantity.
Failing to pay three consecutive instalments or six non-consecutive ones could also be thought-about as an occasion of default. That is in accordance with Article 4(4) of the Private Mortgage Settlement format appended to Discover No. 3692/2012 of the Central Financial institution of the UAE, which states, “The mortgage elapses and all of the instalments, pursuits and every other charges and bills turn out to be due and payable instantly, with out having to provide any notification, or any courtroom ruling and with out prejudice to every other rights of the financial institution in keeping with this settlement or in accordance with the legislation – within the occasion that the borrower did not pay three consecutive instalments or six non-consecutive instalments of the month-to-month instalments with out the approval of the financial institution.”
Due to this fact, in case of a default, the financial institution could select to deposit your safety cheque(s) for assortment. In case the mentioned safety cheques are dishonoured resulting from insufficiency of funds in your checking account, the financial institution could file a felony grievance towards you. Dishonour of a cheque within the UAE is taken into account a felony offence pursuant to Article 401 of Federal Legislation No. (3) of 1987 on the issuance of Penal Code of UAE, which states “Shall be sentenced to detention or to a nice, whoever attracts in unhealthy religion a cheque with out enough funds or who, after giving the cheque withdraws all or a part of the funds, in order that the remaining steadiness is inadequate to cowl the quantity of the cheque, or offers the order to the drawee to cease cost, or if he intentionally writes or indicators the cheque in such a way as to make it non-payable..”
Additional, upon the submitting of a felony grievance, a journey ban could also be imposed towards you and in such an occasion you shall not be allowed to journey out of the UAE.
Nevertheless, if the quantity of your safety cheque issued by you to the financial institution is lower than Dh200,000, the punishment could also be a penalty, which can range between Dh2,000 and Dh10,000, relying on the cheque quantity. Upon the cost of this penalty, felony proceedings shall be closed towards you and a journey ban imposed on you might be lifted. Moreover, the Financial institution could file a civil case towards you, primarily based on the non-public mortgage settlement you signed, to get better the excellent debt on the bank cards and whereas submitting a civil case the Financial institution could place a request with the competent courtroom to impose a journey ban on you, previous to the Financial institution acquiring a civil judgement towards you primarily based on the paperwork submitted by the financial institution to the courtroom. If you’re exterior the UAE, they could file an utility earlier than the courtroom to detain you while you re-enter the UAE.
Within the occasion, the civil judgement is in favour of the financial institution, the financial institution could provoke to execute the civil judgement towards you by submitting an execution case. Within the execution case, the Financial institution could file an utility to the courtroom to freeze your movable and immovable property within the UAE and to situation an arrest warrant if the quantity ordered by the courtroom shouldn’t be paid by you to the Financial institution (by means of the courtroom) inside fifteen (15) days of the Financial institution submitting the execution proceedings towards you primarily based on the judgement handed within the civil swimsuit for compensation of bank card dues.
It is strongly recommended that you simply seek the advice of a authorized practitioner within the UAE to acquire additional skilled recommendation.
Ashish Mehta is the founder and Managing Associate of Ashish Mehta and Associates. He’s certified to practise legislation in Dubai, the UK and India. Full particulars of his agency on: www.amalawyers.com. Readers could e-mail their inquiries to: email@example.com or ship them to Authorized View, Khaleej Instances, PO Field 11243, Dubai.